Connection to the grid
The amended GEG mandates that newly installed heating systems in new residential buildings use at least 65% renewable energy.
The new Wärmeplanungsgesetz (Heat Planning Act) entered into force on 1 Jan 2024. It does require all municipalities (via state planning agencies) to develop binding local heat (and implicitly cooling) plans. Large cities (>100,000 pop.) must complete their plan by 30 June 2026, smaller towns by 30 June 2028.
Use of the grid
The strategy in Germany has heavily relied on heating networks to decarbonise the heating sector. Heating networks enable the efficient distribution of heat generated from renewable sources, waste heat, and cogeneration plants and the government's focus has been on expanding these networks as Germany aims to achieve a sustainable and carbon-neutral heating sector by 2045.
Grid development
Germany operates approximately 4,100 district heating systems, encompassing 34,000 km of pipelines and supplying 140 TWh, which meets 14% of the building sector's heat demand. 30% of this heat is already climate-neutral, incorporating renewable energy sources, waste heat, and waste incineration.
To align with its climate objectives, Germany plans to connect 100,000 buildings annually to district heating networks. This ambitious expansion necessitates an estimated investment of €43.5 billion by 2030, primarily allocated to extending heating grids and integrating renewable heat plants.
Competent Authorities
- BMWK responsible for setting energy policies related to heating and cooling. It oversees legislation such as the GEG and the Local Heat Planning Act (WPG).
- Federal Network Agency (Bundesnetzagentur) regulates Germany's electricity, gas, telecommunications, postal, and railway networks.
- State Governments (Länder) develop specific regulations and support programs tailored to their regional needs.
- Local Authorities (Municipalities): The Local Heat Planning Act mandates municipalities to develop heat plans, identifying opportunities for district heating networks and integrating renewable energy sources.
- Municipal Utilities (Stadtwerke) manage local energy supply, including district heating networks.
- Private Energy Companies participate in the generation, distribution, and supply of heating and cooling services, contributing to infrastructure development and service provision.